MaltaPost had requested the Malta Communications Authority to endorse a revision of the local single-piece and local bulk mail tariff (these are part of the Universal Service offered by MaltaPost to its customers).

MaltaPost calculated that both local single-piece and local bulk mail services have been loss-making for a number of years. The request for the revision in tariffs states that the ongoing challenges such as cost increases puts continued pressure on the financial performance and sustainability of the Universal Service. MaltaPost added that without any price adjustments, the Universal Service profitability would continue to deteriorate.

The authority had issued MaltaPost's proposals for public consultation, and offered the opportunity for stakeholders to provide feedback until 15th May. The MCA received no feedback from stakeholders concerning the proposed tariff revisions.

MaltaPost maintains an Activity Based Cost-Accounting system and prepares regulatory separated accounts which are audited on an annual basis. The MCA has reviewed and analysed MaltaPost's request taking into consideration cost-accounting reviews, whilst assessing and ensuring that the proposed changes will continue to guarantee the availability of an affordable Universal Service.

The cost accounting analysis carried out by the MCA confirmed that the domestic single-piece and bulk mail services are loss-making, and that the option to refuse any price increase is financially unsustainable.

The MCA also noted that the domestic single-piece tariff in Malta is the lowest in Europe. Consumer surveys carried out in 2018 by the MCA revealed that most respondents spent less than €10 on posting articles in the preceding 12 months.

The MCA however concluded that, depending on different scenarios, a partial adoption of the proposed tariffs may be sufficient to maintain financial sustainability for at least the short term. In view of this possibility, the MCA decided that it should maintain a prudent approach and, for the time being, grant only a partial approval for revised prices.